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tv   The Kudlow Report  CNBC  June 5, 2013 7:00pm-8:01pm EDT

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what can turn things around for the bold? an oversold rally. that's what the bulls have to work for. bum marks i promise to find for you right here on "mad money." i am jim cramer and i will see you tomorrow! in your face, that's right, even some democrats are saying that about president obama's decision to make u.n. ambassador susan rice his new national security adviser. yeah. susan rice, the same one who kept saying the youtube video actually caused the benghazi attack even after everybody knew that was false. guess what, congress has no say in her appointment. on wall street, meanwhile, investors suffering through the long-awaited correction, it includes the japanese sell-off and some unimpressive economic numbers. so the dow falls 217 points, for what it's worth, folks, i see
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this as a buying opportunity not a sell. it's another black eye for major league baseball. we are waiting for big punishments to come down and some big stars, major performance enhancing drug scandal blows it wide opened. but will the player's union get in the way of justice on and off the field? all those stories and more coming up on "the kudlow report" beginning right now. [ music playing ] good evening, everyone, i'm larry kudlow. this is "the kudlow report." another tough correction day for wall street. let's get the story dprekt cnbc's bob pisani, good evening, bob. >> reporter: traders are confused. is the market improving for not? the market was volatile today. report on private sector employment by adp was weaker than expected as was an employment gauge released as part of a survey of purchasing
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managers in the services industry. all this is causing some to consider lowering their estimate for friday's critical may jobs report. it's critical to the traders, med officials have been talking about tapering their purchases of bonds as the job markets improves. what is it? is it getting better or not? we got this fed beige book today, officials sounded a little more optimistic, no engage in real estate and bank lending and hiring aids in several districts. so what do traders do when they're confused, larry? you know what they do, they lighten up on their position. the dow is 1.29%, the lost two-day losing streak since november. back to you, larry. >> many thanks to bob pisani. now, in big political news today, president obama replacing his security adviser tom donelan with u.n. ambassador susan rice, they call it a switch from leaker to liar as we have heard rice lie over and over again on the terrorist attack in
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benghazi. so as obama -- >> what happens in benghazi was, in fact, initially a spontaneous reaction to what had just happened hours before in kai. >> reporter: it began spontaneously in benghazi as a reaction to what had transpired some hours earlier in cairo, where, of course, as you know, there was a violent protest outside of our embassy sparked by this hateful video. >> the fact is we had four dead americans. was it because of a protest or guys out for a walk one night decided they'd go kill some americans. what difference at this point does it make? >> all right. . so has obama turned in his charm offensive for a new in your face offensive? let's talk. we have democratic strategist former clinton adviser ed carville and ed klein, the author of the best selling b.c. the "the amateur." welcome back. >> thank you. >> today i think it was today you called this appointment quote in your face end quote.
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what did you mean by that sunday is this going to spark an o'obama wore on the gop? >> i think he started when he was elected, that was in 2009. there has been a war going on here. so he appointed her. she's, first of all, a phi beta kappa from stamford, a rhodes counsel and some people don't like her. i don't think he cares. he won the es lex. so everybody has to get over it. he likes her, he wanted to appoint at secretary of state. and i don't really think he care what is larry kudlow thinks or john mccain or james carville or anybody else. they didn't win the election. he picks somebody he likes who is qualified for the position. that's pretty much what he is going to do. >> i hear you. ed klein, you think it was a wise choice? >> i think it was the post-ridiculous choice he could
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have made, benghazi aside, we know she is unqualified for this job. she has a temperment that loses her temper all the time. she has known to blow up at people. she has, in my view, very poor judgment. she wanted us to go into libya because she was a humanitarian, then she didn't care what happens once we got rid of gadhafi, she wanted us out. i think she's an unwiesz choice. i think the president should care what people think, unline like james. >> one thing to follow quickly, james, i will get to you, samantha powers is rumored, an old crony, a very distinguished woman. she is rumored, james, i'll go to you, to take rice's place in the united nations. now, james, the rap on sa man that power is that she is anti-israeli and pro palestinian. >> you know, a rap on a lot of people, a lot of different
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things. samantha powell probably said some things about one of my favorite people former secretary of state hillary carolina. she is qualified. she wrote a book on gen side. i think we can all agree that's a bad idea. she'll go up. i think that's a confirmable position. people will ask her. just to say somebody is pro palestinian is, you know, a lot of things, charges get slung around. i'm sure she will get askedant that. again, i go back to miss rice, i was a friend of hol brooks, who she famously did not get along with. i think she is qualified for the position. she's a pretty assertive women. some people don't like pretty assertive women. i suspect obama, maybe he likes that and heir. it's his choice. he won the election. that's what happened. he's won two elections. >> let me go, ed klein, i want to american this to domestic politic, because, obviously, this benghazi thing gets
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re-enflamed over the susan rice nomination. >> absolutely. >> james is right the president doesn't care. maybe it's too bad he doesn't care. generally, okay, you got a new paperback book out, a new addition about obama called "the amateur." the issue is, how much are these scandals, how much is the irs, how much is the national security media wiretapping, how much is benghazi going to hurt obama and stop out his 2nd term agenda? >> i think it already has hurt him a great deal and i think it will continue to put a tremendous obstacle in his achieving his agenda for a sec term. he's totally consumed right now, despite these nominations with dealing with these scandals and you know with the amount of energy, time, man power, he must be putting into this. >> james, i'll ask you the same question, i mean, the irs thing has really taken off. they've all taken off. you've got eric holder involved.
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how much time does the president put into it? what's it do to a second term? >> i'll be honest, if you look at the nbc "wall street journal" poll withcy probably one of the best of these media poll, very little republicans are down nine. i think they just don't care. i think they think issa is not their political or intellecttual equal. they let him go, do what he's got to do. i don't think they're very concerned about this at all. i think they know this stuff is in the background. i think they think think can beat the republicans politically any time they want to i don't think people in the administration have a lot of respect for the other party or the political satisfy 50 i'm not sure they care. >> i'm not sure what obama's 2nd term issue is, that's one thing him secondly, james doesn't think this will hurt obama. poll showed erosion among independent, tremendous erosion in obama's popularity.
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is that the key to understanding the toll that these -- >> i think the irs scandal has hit home all across the united states, especially with the testimony yesterday of these various people who come from the middle of america who are testifying about how they were targeted by the irs. all those scandals are eating away at obama's credibility and there's no, you know, for james to say that they don't care because they're oblivious to public opinion, i think isn't the way politics is run these days. >> i didn't say they were oblivious to it. i said they didn't think the republicans were intellecttual or political equal and that they're not that concerned about i. maybe they should be. look. i think in the first debate, he didn't have much respect for romney. i think romney was more aggressive and won the first debate. he lost the next two. i think you got to take these things a little more seriously.
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i just think that they just think, issa is i don't know a fool is the right word for it, i don't think they hold him in very high regard. i just don't think they're worried about it. i know they got to live with it. >> live with it. i don't agree with you, james, you know more about politics than i do. >> it's my opinion. i could be wrong. >> i appreciate it. james carville, best to pare, by the way. ed klein will be here with me the rest of the hour. now we go to another government scandal breaking out today. get this federal officials have yet to release $125 million owed to virginia from a medicaid fraud settlement eight months ago. so, is the irs targeting specific states now, too? let's talk to virginia attorney general and gubernatorial candidate ken cunicelli. you are a tee party guy, do you think the fact that they haven't paid you the $125 million is a
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deliberate move by the irs? >> well, i have a news update for you, larry. the fact of the matter is at the end of the day today, they commune kited with us, okay, the money is coming. it's going to be $115 million. it took eight months, actually, it took almost two years. it took us beating them up publicly with the irs blocking the way for eight months for this to happen. and so we came out publicly this morning to cule attention to the irs' blocking role in virginia getting its money from the federal government in the largest health care fraud case in the history of the united states ever investigated by a state. >> but you helped -- >> virginia accomplish. >> you helped, your office dug it up? >> absolutely. we were the lead investigators. we brought the indicate. we partnered up with the federal government. we were the indispensable team player in this thing. the federal government's already pocketed over a billion dollars from this case. this was a billion-and-a-half dollars health care fraud case
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against abbott and virginia was the lead investigator on it and they sat on the asset forfeiture money that came from the bad guys in this case and didn't free it up for our law enforcement to protect themselves and to protect the people of virginia. >> right. but do you think, do you think it was a total coincidence that with the irs hearings in full swing and i think, i agree with my friend ed klein, i think they're taking a tremendous toll on the democratic party and the white house and so forth. do you think it's a coincidence that all of a sudden the irs unlocked that money that you have been trying to get for what eight months? is it sa consequence dense? >> i think that the pressure they're under led to the answer to that question being no. i mean, they have been stalling for eight months. let's face it. we have been trying to be patient about it because at a law enforcement level we work with them. when it crosses the potomac to virginia and gets to treasury and headquarters, everything goes haywire over there. they've known about this for
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almost two years now, brew it took too today until we went public with it for them to get back to virginia and say, okay, we are releasing the.. this should have been easy. this shove happened months ago. the interest alone would have let us boy 1,000 bulletproof vests for law enforcement in virginia. they sat on it. >> they will give you the interest. last question, are they going to make the interest up to you? >> no way. no way. >> in fact, all that you have done, larry is tell us a number. they haven't transferred the money. i'll believe it when the money comes across the po to ma. >> show me the money. >> thanks, attorney general, we appreciate it. he is running for governor in the state of virginia. now, another drug scandal in baseball. we are awaiting to hear about major suspensions for some very big stars as reports say major league baseball has strong evidence they used performance-enhancing drugs. is this the last straw for players like a-rod? what role is the players union
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going to play in all this? and that big market sell-off is a part of a long-awaited correction. but friday's jobs report may be weaker than you think. please don't forget free market capitalism is the beth path to prosperity. you know what? how about a corporate tax cut to spur the animal spirits here in the usa. i'm kudlow. we'll be right back. [ male announcer ] it's intuitive and customizable, just like a tablet. so easy to use, it won a best of ces award from cnet. and it comes inside this beautifully crafted carrying case. introducing the all-new 2014 chevrolet impala with the available mylink system. ♪ [ beeps ] ingeniously connecting you to your life and the road. that's american ingenuity to find new roads.
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there could be a clash between labor and management brewing in major league baseball t. league wants to suspend players linked to a facility in florida, whose founder says he was providing performance enhancing drugs to the players. you request bet the union will fight that. joevening us joining us is sal from new york and tony bosch, is he going to sing as to major league baseball. is that going to lead to a-rod and 100 guys out 100 games or more? >> it certainly sound like it. he will rat these guys out. now the big question is, you mentioned it, are these guys
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going to get 100 games suspensions? a-rod admitted guilt back in 2009. he was a phony back then. he's a phony right now. the question will be will it hold up? can they, in fact. get that by the union without failed drug tests? i'm not sure that will be the case. we know major leak baseball will do everything they can in their power to bring down the harshest of penallys on tease guys. >> one point on ed klein, reading some of the reports on this, particularly the lengthy but good espn report on this this guy bosch, he was cash and courier, not cash and carry. cash and courier. so he never actually had contact with a lot of these ball players. so does his testimony stand up in whatever court the winds up in? >> who knows. that's the question. bosch has immaculate records, 20 guys. you saw the names, some not big.
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ryan braun, alex rodriguez. if a guy like a-rod who admitted guilt in the past and ryan braun who escaped based on a tech physicality with a fed exdelivery guy. he failed the test. these guys will be guilty. really, in major league baseball, everybody is guilty until proven innocent. if you have a guy like bosch rat these guys out, it will be very difficult for the players and their unions to prove otherwise. >> you know, if this continues as widespread as everybody says it is, teams will have a lot of trouble fielding nine players because god knows how many other players are involved. >> that's a great point sal, is this the tip of the iceberg. ed klein asks, is this the tip of the iceberg regarding the players who were dopers? >> no, i think we are starting to get on the back end of this i think major league baseball has done 15 to 20 years late. i have to believe you will start to see this stuff get filtered out of the sport. the guys who will be cheating,
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you saw a guy lyme like melky cabrera, hess suspended in what could be an mvp-type season for him. guys like that have been benefitting. he gets a contract from the bluejays. be tumor harsh penallys you bring down. we're talking 100 games, if you offended three times, are you out of the sport. so to me, anybody with a brain, obviously these athletes, it's questionable sometimes whether they have a brain or not. anybody with a broken would not want to use and be caught, forget about your image, the fact that you won't be able to earn that major league level money. >> sal, let's go to this pla jor league player's association, they will try to prevent this in some way, shape or form. what's your take on that? >> look, they'd be doing their job. the union has to protect their guys. they will go to with the for their players, whatever is in the contract, whatever kind of failed test that never came up like a-rod, in this case, a-rod and braun didn't particularly fail tests on this stuff. they will fight for their guys.
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that's their job. you can't get on the union for that. you want to get on the players for cheating. i give them a pass t. real people with a problem is major legal baseball. they started the probably in the late ''80s, after the strike and in 1988 we saw everybody is out there with the ballparks rooting for mcguire and then bonds years later, he goes out there, hits the homers. major league baseball didn't care because they were making money. and that is the problem and it already tarnished an entire era. the record the history of the sport t. recordbooks are ruined. the hall of fame is ruined. now, it's a little too little too late but they're trying to move on. i think they're doing the right thing by bringing down the hammer on these things. >> sal licata, we appreciate it. folks, more detail big time waste and corruption at the irs, mary thompson will join with us that story and more headlines next up on "the kudlow report." she's always been able to brighten your day.
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for minor injuries. well, the more we dig into the irs, the more dirt is discovered. today the irs saying it placed two employees on leave for taking impro proper gifts. they received $1,100 of 43 food and items at a conference in 2010. both are senior members charged with implementing obamacare from the sarah hall ingram. she is not said to be involved in this. i know you have been following the story of asc capital steve cohen's hedge fund, it lost a lot of investor money bus of a long drawn out government investigation. today a letter was sen to the employees to re-assure them the firm will still operate and no major layoffs are planned. last night the winner of the $590 million powerball jackpot came forward to claim her prize. she is gloria mckenzie near town in tampa, florida. she will get a lump sum. she says she spent the last two weeks since the drawing getting
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advice from financial advisers, which i think shows she is a smart lady. >> right off the top. now, mary, if you had it, what would you do with it? >> i think the first thing is you set up a charity or a foundation, do. that i think the rest of it would probably be some educational for some of the people in my family. other than that, who knows? i like art and real estate. if i had money, i'd buy those. >> god, now is the time. >> it's fun to dream. >> investment portfolio and the news, i just love that stuff. thanks very much to her. now, most of the economic news was disappointing today, that helped send stocks way down again. again, a correction has been ray overdue. we will get the facts straight on job, on housing, on much more next up. folks, don't forget to tune in tomorrow night. we'll have two firsts on cnbc interview, big names, 2012 presidential nominee mitt romney will join us and cypress semi conductor t.j. rodgers.
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in this half hour, a drop in the dow t. worst two-day performance of the year. long-awaited corrections is here. friday's jobs may disappoint. we will break it down for you in a few moments. later on, the government is set to sell off more gm shares. how much of that bailout money are we, the taxpayers, going to get in that? we will have big numbers coming up. first, we have another shady episode this week. ayman javers has the story. good evening. >> reporter: well, it was a monday morning market mystery. why did some trade, appear to known the contents of the isf manufacturing number before the 10:00 a.m. official release time for that information? let me walk you through this mystery here. sheer data nanex, a chicago area analysis fimpl gave us yesterday. take a look at the left. that's the arrow that shows the market action beginning, a spike in trading volume. 15 milliseconds before the
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official 10:00 a.m. release time the right-hand aro there. why did that information get out to traders early? we learned that thompson reuters has a high speed data transmission line. they sent this admission out early to the high frequency traders who were able to take advantage and trade ahead of the official release time. they say we have identified that there was a minor clock synchronization issue monday causing this data to be released 15 milliseconds early. we are taking measures to synchronize clock issues to insure the release of the data is as close as possible to thefessional release time of 10:00 a.m. larry, 15 milliseconds might not sound like a whom lot of time. fact, it's less time to blink your eyes, that takes 3 to 400 milliseconds for a human eye blink. naenex found about $28 million changed hands during that interval and the downward moves that were spotted there in 369
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different stocks just in that little blink of an eye. so larry, what we are talking about here is this era of high frequency trading. it's very hard to determine when information has gone public. it looks like some people are getting access to the information before the rest of the market. that's definitely what happened here, larry. >> do you think thompson reuters can button this down or are we going to see it again? >> well, one of the questions is how finely calibrated can umaic this technology? they appear to have had an issue it went on 15 milliseconds early. can they calibrate it so it only goes out after 10:00 or if the machines aren't that specific, will they lose the advantage they are giving their paying subscribers by putting it out after 10:00? of course the whole advantage of subscribing to a high speed data service is you get the data before anything else, the trick will be how to physical out how to cal bra it this so it doesn't go out early, it goes out fast enough that it gives advantage to people paying big bucks to receive it.
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thompson, reuters, ism would not tell us how much thompson pays ism for the early data. they would not sigh how much thompson charges its customers for the information. >> many thanks, ayman javers, appreciate it. markets are correcting in disappointing news. take a look at today's data. i think it paints a rather ten id picture. isn services reached up. is below the first quarter number and the employment measure inside that index fell. also, on the economic docket this morning, factory order, meaning business investment that creates jobs. unfortunately, year over year, that number is basically flat. up only .6 of 1%. for the job creation there. look, it is still a tepid recovery. the much bally h oo breakout i keep hearing about just ain't happening. we have brian kelly, "fast money" contributor, bill baldwin, forbes investment strategy editor who recently
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published the article in forbes investment guide "freeze out uncle sam." out of retirement and have doctor 260 grand and pay just $198 in frool tax dollars. wow. my co-host for the hour, ed klein, new york times best selling author of "the amateur." before we get these economic number, i want to get your quick take, japan going through a brutal correction, now it looks like our correction has been long awaited. they may not move in lock and step, but will they end lock and step? how do you play this? >> yeah, they somewhat end lock and step. it is all related, right. it's all a liquidity trade out there. everybody is trying to get ahead of the japan numbers, short yen, everybody ran for the door at the same time. i think there will be time to buy japan in the next let's call it 60 days or so. i think our market here will probably have a buying opportunity. >> you think 60 days for both
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markets? >> in the very short term, with emight be. if we get another washout day like this, it might be time if you are short to cover those shorts. i think for japan it will probably be august or so before the tape just nodes some time to digest. the people got to get out. >> both japan and usa ought to cut corporate tax rates. bill baldwin, is this a great time for to you repeat your forecast made on this show of dow 20,000? >> well, i'm basically bullish. i said back then. it was a while ago, dow 20,000 in 20 when thelet. we'll get there some day. you know what's depression in the market is some day we will pay for the god times with higher tax, higher inflation. there is this gloom in the future. you and i, larry, are given gloom. there is that ray of sunshine, prosperous retirees aren't paying taxes, did you know that? i didn't know that until i tried putting it in any computer. >> prospering retirees are not paying taxes, i like the sound of that. >> 83, for million they triple
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millionaires. i have a model portfolio for a couple that are pulling down $200,000 a year in income from social security, dividend, interest and partnership distributions and tear federal tax bill is $17. so it isn't all bad. it's bad ma ib for mitt romney. >> let me briefly go to ed client. i'm not going to ask you for your portfolio strategy, but i do want to ask you. people are talking about how the economy is supposed to spring up again. >> right. >> how the federal reserve might have to tighten its policies. in terms of obama-nonics, which you have written about. has it delivered the goods? >> no, what is so great about the great recovery? it isn't there. i read ucla's anderson forecast today saying that the jobs that were creating are simply not enough to make due for the people coming into the work force. i mean, this is not working.
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we're not there yet for by a long shot. >> i know. i think it's been a 2% recovery. is a lousy recovery. it's the worst in post-war history. it should be 4 or 5%, if you ask me. anyway, i want to talk about maybe the strongest part of the economy and that is housing. all right. question, should people be worried about mortgage rates? they're moving up, maybe around 4%. the 30-year mother-in-law rate sits at 4.07%. it's up from 3.59%, just four weeks ago. i want you guys to ask, first of all, mortgage rates, help or hurt the housing recovery? >> you know, i think there's probably two ways to look at it. in that they start the go up. you get those buyers on the sides. >> i don't want to miss this. yeah, absolutely. you also need to keep nit perspective. we're still looking at historically low rates. really the average home buyer is not going to know the difference on a 30-year mortgage of 40
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basis points. >> you have to go up several percentage points right before that? in there absolutely. so stockmarket and traders and money managers got excited about these small little moves, because we're trying to get ahead of it. in reality, i don't think 40 basis points is going to stop the housing means. >> purchasing applications and all that stuff is doing well. bill, another point, an interesting article in the new york times how investment pools, okay, well-known investment pools are in there scooping up homes at cheap prices in the worst parts of the kentucky you think that's god or bad? >> i think it will be a very clever investment for somebody that lived next doorp to that depressed home and had a hamner his hands. i think for the outside investors who think they can get in on a partnership and get rich this way, there will be disappointment. >> these are big time investors. i would argue, they're creating floor for the mark. this is a free market private sector thing. it is not government driven. they're creating floor for the
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market and that allows the market to recover and have confidence, because people know that some big money is behind these houses. >> well, to some it is speculation, a bubble programs, why is a higher house price god for everybody? it's good for the person trying to sell it, it's bad for the young person trying to boy it. >> it does create wealth. there is balance in this story. >> you feel you are wealthier when your home in kechl gets re-appraised at a higher price, wealthier, do you spend more? >> i might invest more, just like when my stock portfolio improvgs absolutely zblits free market capitalism. >> this bernanke thing is working for you. feel rich, it's an illusion. >> i have me a culpaed a bit on the bernanke. there is no inflation, things may not be getting better. a lot is fiscal. it's not his fault. this is not the time forto us do that. i have mea culpaed on bernanke,
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i am not yelling at him anymore. the interest rates are so low. an avalanche on a disappointing read on the adp jobs report t. private sector added only 135,000 jobs in the month of may. that's below expectationings, could foreshadow a weaker number on friday. bryant, let me ask you this. inside this adp number, which is about 30, 40,000 short of expectation the worst part is middle income businesses, 50 to 500 or 600 employees. that's where obamacare kicks in. is that a factor? i know you follow politics and -- >> yeah, most certain ily, the small -- certainly, the small and medium businesses get hurt disproportiona disproportionately. maybe i won't take on that worker, will is not that much business out there for them. they have marginally less access
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to this cheap money, let the corporations do. it's not as easy for them. >> that's the flow under the bernanke approach. it's the big boys who don't get the money. the medium size run and small businesses don't get the money. let's take a whack at this. >> yeah. >> do you think president obama will re-appoint ben bernanke? >> no. >> even if bernanke said, i'd stay? >> i think he will want his own person. >> who do you think? any speculation? >> everybody is talking about volper. he is a little too -- >> what is your forecast for jobs on friday? >> 150,000. >> low side. >> it's higher than the adp number. >> what is your number? >> you know, i go with the consensus to me. i don't think it will matter as much unless it's a big spike up let's say 250,000 or below 50,000 to the market. somewhere in between, if we miss it by 20,000. i won't care. >> the fed might care. did you say 160,000?
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150,000? >> yes. let's use that? >> in that ballpark. if you get 166ish, i'll give you a range 150 to 175, does that impact federal reserve policy in anyway, shape or form where they would stop buying bonds or slow down their bond purchases? >> i think you ned to have two or three months of that before they do that. that doesn't mean the market won't react and anticipate ahead of time. that's why i mention, if we get something below conconsensus the market will relate. come august, come september, that will be it. >> we will leave it there. very good. gentleman stick around. we have more news to cover on this. two of the biggest names in corporate america in the news today for different reasons. mary thochson has big news on gm and apple just ahead. thompso.
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price of 33, well below what the government needs to break even. taxpayers have lost nearly $20 become on the bailout. treasury hopes to be completely out of the auto maker by early next year. apple, the itc saying apple did environment samsung patents. could mean apple would have to stop selling certain older models of the iphone and ipad. analysts say those versions are no longer big sellers so the revenue hit would be minimal. >> we appreciate it. bill baldwin, talk to me real quick about apple vs. samsung on this patent business. >> i'm a little bit afraid that the asian engineers are getting the american disease. they're going to end up spending more money on patent lawyers, less money on the engineering. that's really sad. >> is it true that, i mean, apple's had its stockmarket troubles. we all know that. these, in fact, the older foerngs we don't have to worry the newer phone, there are no patent problems?
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>> i think the market is smart enough to realize apple's success depends on things moving too fast to patent you get a six-month lead on your competition, not a 17-year lead. the pat tent is almost irrelevant. >> samsung has given them a run for their money, is that fair? >> i think the lawyers are causing them problems. >> samsung i think has surprised everybody with great products. brian kelly, talk to me about the gmt. current surprise $34 a share. what do they need? i think they're about $10 billion in the hole after this reoffering,ing like that. what do they need? can gm stock go to 44? can it go to 54? if they do, we will be whole. >> we will be whole, that will be nice. i'd rather see us make money sense we took all the risk. that's not my choice to the time. so if for gm's stock, though, i think we're probably looking at a short-term top here. i think you have seen the auto sales, they're starting to tren out about 15 -- trend out about
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15 million. they are starting to weak an bit. if you get uptick, that could on the margin start to hurt those types of things. >> car sales? >> car sales, exactly. then the jobs number. at some point everybody that bought a car that needs a car can buy car, they stop buying it and the 25 to 30-year-olds can't buy a car. >> if, ed blien i klein, you had it to do all over again, would you bail out general motors? >> no, i certainly would not have, i would let them go through their normal bankruptcy procedures, without the united states having to get involved in telling them how to make cars or what cars to make and all that. no, i wouldn't have done it. >> but you know, of course, that if gm stock does pop, i'm pointing to brian quelly, you are saying it won't pop in the near term, but it might populater, obama will herald this as a great example of how government can rescue private enterprise and capitalism. >> he has sylindra to explain.
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>> oh, right, don't we still have money in chrysler? where else we got money? all those bankrupt greeny things. you are right. it's not just sylindra, battery companies. >> going bankrupt left and right. >> department of energy as a hedge fund, bill baldwin, what do you think of that? >> they have a knack of picking losers. is there some way to profit by that? >> here's the thing, if you run a big hedge fund like that, your winners have to outpay your losers. we should make a lot more on that. >> anyway, thank you, gentleman, many thanks. brian kelly, bill baldwin. by the way, read baum win's article, it's called read out uncle sam. it hits news stands later this week. ed klein will hang out with me some more. now, it wasn't just the irs, the epa now stands accused of singling out organizations for tougher treatment. this is in another area, but we have the details on this story up next on "kudlow." something completely different.
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. as if the irs wasn't bad enough. now a second organization faces accusations of politically targeting conservative groups. this time it's the environment am protection agency, which allegedly was trying to charge conservative groups fees while largely exempting liberal ones. joining us on the phone, chris horner, a senior fellow with the competitive enterprise institute. he is the author of the book
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"the liberal war on transparency." ed klein is still here. chris horner, welcome back to the show. where did the epa overcharge conservative groups? >> they didn't declare before a judge they could. what they do is this, it's not just to me. they say you don't qual for a fee waiver, you didn't make your case even though, for example, i submit a 20 or 21-paige fully sourced legal document that is my request. well, the greens don't have to do that. so they buy time. they delay. they are able to we're down groups that don't have the time or resources or ability or proceed through the appeals process, file lawsuits. what they do is get you to drop off. in our case, we found out they denied, 90% of the times, 19 out of 20 requests they denied or ignored our requests while they granted 75 out of 82 that is 90-plus poempbt
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environmentalists, their chosen selected environmentalist groups requests for fee, which would be considered if youwalk watch the week's irs hearings, subsidizing the greens while denying the other taxpayers the right. >> so the evidence is pretty clear on that. are they going to make any changes because of this irs scandal? do they feel badly about it? >> they might feel very badly. they could feel worse. there is now an inspector inquiry into this, thanks to pressure by the senior republican on the environment committee in the senate the senior republican on the judiciary committee on the senate and a man with a gavel, darryl issa. i readant this in the book. they do this a lot. it's pretty clear. it's one of their tactics. it is so pro founded there are going to have to be consequence, because thee these fees can run into six figures for big documentations like the ones we pursue. >> i got ed klein with me here, too, i just want to ask you, i think you believe there is more secret e-mails out there.
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i mean, we know about the department of health and human services. we know about epa. in fact, lisa jackson of epa. she might have stalled. she might have cost you money under the name of richard windsor. that was her secret e-mail. now, are there other agencies we will find out besides sebelius and jackson who have secret epail addresss, thereby avoiding any public or government scrutiny? >> yeah, absolutely. i'm looking at a document now, tomville vilsack's secret e-mail. he's the secretary of agriculture, whether it identifies the official. richard whipped sore was a false identity. the claim that everybody has done that is simply untrue. when you adopt this jd, job letters or numbers. it doesn't identify you, this is rampant. we will find it i bet you
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everywhere we look the three places we looked so far, we found it. >> ed klein, let me ask you about this secret e-mail business. i'm unaware this sort of thing has ever happened before. >> i don't recall it either. i wanted to tell you about something, larry, that your viewers may or may not by a ware of. about two weeks ago, the american spectator who the story that the head of the irs union. >> right. >> you know about this? >> i do. colleen kelly. >> met with the united states the day before the irs started targeting these groups. >> she's a big liberal. they, of course, give money to candidates. >> a liberal tea party group this union. the question is, if she met the day before the irs started this, did the president really not know? >> right. she could be one of the invisible hands, this kelly. she's the person we should have actually testifying for these
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committees. i got to get out. chris horner, thank you very much. ed klein, thank you. good luck on the book. tomorrow night, we will be joined by two distinguished guests. my co-host will be t.j. rodgers, the ceo of cypress semi conductor. we are will be joined by former presidential nominee mitt romney. that's it for this evening's show. i'm larry kudlow. thanks for watching. ac is helpis expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at [ male announcer ] see what's happening behind the scenes (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking,
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